TaxTMI 
TaxTMI 
2009 (8) TMI 1096
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....urn. It was subsequently noticed that for the relevant period, the particular product sold by the petitioner-dealer was exempt from levy of tax, except for one or two months of the entire period, and in respect of rest of the period it was at nil rate, whereas the tax, it appears, had been indicated to have been collected at four per cent and on such premise, remitted the tax component along with the returns. The authorities on noticing this position, caused a notice under section 18AA, KST Act, read with section 9(2) of the Central Sales Tax Act, 1956 (for short, "the CST Act"), as it was found that the position was not much different in respect of the amount shown to be the tax component under the KST Act and the CST Act and the d....
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....ion as asserted by the dealer, that in fact there was no collection of any amount by the dealer as tax from its customers and if so the provisions of section 18AA of the KST Act were not even attracted and there is no question of forfeiture of the amount in terms of the provisions of section 18AA of the KST Act. In support of the submission, learned counsel for the petitioner would further elaborate that though the periodic monthly returns filed by the dealer did indicate that the dealer had collected certain amount as by way of tax, both under the KST Act and CST Act, the amount, in fact, had not been so collected; that the amount paid by the purchasers only represents the price of the entire product and if so, the authorities not examini....
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....he turnover by itself included tax component and therefore that part should be excluded from the turnover for the purpose of computation of tax liability and this argument had been rejected. In fact as indicated in para 14 of the very judgment, which reads as under: "14. Lastly it was argued that in the second category of cases where the sales tax was not included in the bill and was kept in the suspense account by the seller, it could not be included in the total turnover. This fallacious argument was rightly negatived by the High Court for the obvious reason that the amount includible in the turnover on the true interpretation of the relevant provisions cannot become excludable merely by reason of the accountancy device adopted by the a....
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....argument advanced on behalf of the petitioner is that the amount having been paid by the dealer itself in the sense, the tax component as indicated for the goods having been supplied by the dealer itself from out of the sale price received from the customers, it was still even if the amount was forfeited to the State, if anything recorded by the assessing officer and the higher authorities that the dealer had in fact collected is modified or varied, a finding is recorded that it had not been collected, the dealer can take the benefit of subsection (4) of section 18AA, the matter requires examination on merits in this revision. In the first instance, it is not open to the dealer to put forth such a contention, in the light of the finding of....